Holden’s Adelaide Assembly Plant On The Ropes?

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According to a report from The Australian, Holden — GM’s Australian arm — has stated that it will send domestic production of its Holden Cruze outside of the country unless the Australian government is willing to assist in some way. Such a move puts the assembly plant in Adelaide, South Australia in jeopardy, as it produces the Holden Cruze, as well as the Commodore.

The company cited lack of future government incentives such as the Green Car Innovation Fund that previously provided $149 million worth of fiscal cushion. Australian officials have stated that the incentive has “run its course” and will henceforth be phased out, with no plans to replace it.

As far as a business case goes, Holden’s chairman and managing director Mike Devereux said that it will “not be as positive without any co-investment. Doing the investment in this country would have less positive financial outcomes than doing it in other low-cost places.”

Maybe it’s all smoke and mirrors. But as it stands, the Adelaide plant seems to be in some serious trouble.